AMD (AMD) PT Raised to $100 at RBC Capital

RBC Capital analyst Mitch Steves raised the price target on AMD (NASDAQ: AMD) to $100.00 (from $92.00) while maintaining an Outperform rating.

The analyst commented, "At this time, we think several long-term investors are revisiting the AMD thesis given its pending transaction with XLNX. In this report we provide a long-term interactive model that projects out until 2025E ( For a copy of this interactive model please email your RBC sales rep ). Important points include: 1) potential for $5.50 in EPS out in 2025E, 2) potential for $300 to $600M in communications revenue synergies within the first 12-18 months post closing, 3) notable margin expansion due to economies of scale and potential upside to the $300M cost saving synergy target and 4) no change to our thesis regarding share gains at AMD core for CPU servers and potential upside from a growing Data Center Graphics opportunity. Net Net we raise our price target to $100 (from $92) on the long-term potential for AMD/XLNX. As an important point of emphasis, we continue to believe the stock remains range bound for 2-4 months due to the all stock transaction, however, this does not impact the long-term thesis."

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